Finland's Jolla files for debt restructuring after running out of funds

Jolla was founded four years ago by Nokia's former MeeGo software team, which was shut down after the once-dominant phone maker failed to compete in smartphones such as Apple's iPhone and decided to switch to Microsoft's Windows Phone software.Reuters | November 21, 2015, 19:29 IST

HELSINKI: Finnish mobile operating system company Jolla, created by ex-Nokia software developers, has filed to a local court for debt restructuring after running out of funding and plans temporary lay-offs, it said on Friday.

Jolla was founded four years ago by Nokia's former MeeGo software team, which was shut down after the once-dominant phone maker failed to compete in smartphones such as Apple's iPhone and decided to switch to Microsoft's Windows Phone software.

Nokia eventually sold its ailing phones business to Microsoft last year.

Jolla developed its own operating system called Sailfish, based on MeeGo software, and launched two devices running on it, but recent funding talks with investors have stalled.

"Jolla's funding round has been delayed, which is why the company must adjust and reorganise its operations. We will apply for a corporate reorganisation to ensure continuity and turn into profitability," the company said in a statement.

It said it would have to temporarily lay off a large part of its staff of about 100, but did not say how many. It did not say how much debt it had.

Separately, RCom initiated contempt proceedings in the apex court against the Department of Telecommunications, blaming it for delaying a spectrum sale that would have enabled dues to be paid to Ericsson and lenders.